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<div class ="TITLEFORM">Compounding Of Offences</div>
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<p>Compounding refers to the process of voluntary admission of any contravention, pleading guilty and seeking redress. Contravention is a breach of the provisions of the Foreign Exchange Management Act (FEMA), 1999 and rules/ regulations/ notification/ orders/ directions/ circulars issued thereunder. It provides comfort to any person who contravenes any provisions of FEMA, 1999 [except section 3(a) of the Act] by minimizing transaction costs.</p><br>


<p>One of the important pre conditions before making a compounding application is to ensure that all the approvals or permission from the Government or statutory authority concerned including submission of pending reports, as the case may be, have been complied with. In other words, regularise the contravention and then apply for compounding. Please make note that while regularising the transactions falling in the scope of FDI policy or policy matter, approval/ post facto approval has to be sought from DIPP/FIPB/SIA before a compounding application is made. And if the issue is not a policy matter, necessary approval from RBI has to be sought before a compounding application is made.</p><br>

<p><i>Detailed Article is provided under Articles Section.</i></p><br> 

<p>For you to seek our guidance or advice, please click on the link below and fill the required information for us to respond to your queries. (Only for registered users)</p><br>

<p><a href="#" onclick="ShowBodyUiApplication('Postyour~compouund')"><u>Query- Compounding of Offences</u></a></p>

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